Lovett attempted to expand his budgets to aid the Korean War effort, overall military rearmament, and to ensure the long-term preparedness of the United States. However, Congress and the steel industry were not so obliging. Congress slashed the 1952 budget $13 million from 1951. A wage strike in the steel industry threatened defense production (in fact, Harry S. Truman attempted to avert the strike by taking over the steel mills, but the Supreme Court overruled this action, and the strike ensued). Despite these troubles, Lovet noted that "the last six months of 1952 saw the most significant increases in the military effectiveness of the United States since the beginning of partial mobilization."

Lovett was keen on NATO, and during his term enthusiastically endorsed the entry of Greece and Turkey as member nations.

As his term ended, Lovett was growing dissatisfied with the organization of the Department of Defense, and wrote a letter to Harry S. Truman outlining the changes he felt would be necessitated should the United States enter into a large conflict. He felt the armed services should be more unified so that in the event of a conflict they could work smoothly together. Though Lovett left office on January 20, 1953, many of his suggestions formed the groundwork for massive organizational changes made during the Eisenhower administration by his successor, Charles E. Wilson.

1953: returned to Brown Brothers Harriman and Company as a general partner

1945: Distinguished Service Medal for overseeing military aircraft expansion and deployment during World War II

"He has truly been the eyes, ears and hands of the Secretary of War in respect to the growth of that enormous American airpower which has astonished the world and played such a large part in bringing the war to a speedy and successful conclusion." -- Harry S. Truman